Our website uses cookies to enhance the visitor experience (what's a cookieCookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.). Are you happy for us to use cookies during your visits?
Please note: continuing without making a choice equates to giving us your consent, which you can withdraw at any time via our cookies policy page.

Small Firms Loan Guarantee Scheme

Newsletter issue - May 08.

As a small business you may face a dilemma; you are forced to limit the scale of your operations because you cannot get access to loan capital, but the bank will not provide further funds as you have no significant assets to provide as security. The Small Firms Loan Guarantee Scheme could provide a partial solution.

The Government department: BERR (former DTI) will guarantee 75% of a loan made available from one of 29 high street banks, regional development agencies and finance companies. You as the borrower have to pay a premium of 2% of the outstanding capital per year. The lender is not permitted to ask for a personal guarantee against this Government backed loan but it will ask you to pledge some of your business assets such as stock or equipment. The amount of the loan can be anything from £5,000 to £250,000. In all cases the period of the loan cannot exceed ten years.

Most businesses with a turnover of up to £5.6 million can qualify for the loan guarantee. Some industry sectors are excluded but service providers such as caterers, estate agents, hairdressers and retailers can now apply. You do not have to have a long business record to be considered for the scheme but you will be asked to provide a business plan. We can help you to write this plan and to get the best deal from the bank under this scheme.

  • Auto enrolment icon

    Auto Enrolment

    Workplace pensions rules are changing.
    Be prepared for auto enrolment, see how we
    can help and read up on our guidance notes.


  • Cloud accounting icon

    Cloud Accounting

    With our online bookkeeping packages, our support
    services are only a click away.
    Discover cloud accountancy solutions to bring your finances up to date.

  • Pay less tax icon

    Pay Less Tax

    Our experienced tax advisors can help you
    make the most of your options to reduce
    your tax bills.


  • Make more profit icon

    Make More Profit

    From business plans to management accounts,
    our business services will ensure you are in
    control of your business finances.


  • Source finance icon

    Source Finance

    Our experienced partners can guide you
    in getting the finance you need to make
    your business grow. Read our guides or
    contact us for a free consultation.

  • Outsource your payroll icon

    Outsource Your Payroll

    Let us handle payroll compliance for your
    business. We can deal with HMRC on your
    behalf, and take the stress out of RTI.